1. Project Summary and Relationship to China's Agenda 21

This project seeks optimal approaches for co-ordinating rural socio-economic and eco-environmental development in order to accelerate poverty alleviation and resource development, and to further realise sustainable agricultural and rural economic development in the MRL region.

This project is based on programme areas 2A, 2B, 4B, 4D, 6C, 8A, 11A, 11C and 11E of China's Agenda 21, and is related to programme areas 11F, 11G, 16C and 17B.

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2. Background

The MRL Region of Jiangxi province (which includes Poyang Lake and its tributary catchments of the Gan, Hu, Xing, Rao and Xiu rivers ) covers an area of 162,200 km2, occupying 97.2% of the province's land area. The five rivers are links connecting mountainous areas in the upper reaches and the Poyang Lakes in the lower reaches. The mountain areas, river and lake areas are closely interconnected and interdependent. The MRL Region is abundant in natural resources and enjoys a sub-tropical monsoon climate. It has great development potential. However, extensive and irrational development in the past has severely degraded the ecological environment and hindered regional socio-economic development. The project plans to integrate resource development with regional comprehensive land management.

This project has been incorporated into the Ninth Five-Year Plan (1996-2000) as well as the Long-term Targets for the Year 2010. In 1994, with the support of the State Planning Commission, State Science and Technology Commission and the Administrative Centre for China's Agenda 21, it was included in the first trance of the Priority Programme for China's Agenda 21, and has received technical and financial assistance from UNDP, IFAD and the German government. The project will promote sustainable social and economical development of Jiangxi province and will have an important effect in the middle and lower reaches of the Yangtze River.

Through eleven years of hard work, the following results have been achieved: the MRL Regional Development Centre and three training centres respectively located in mountainous, hilly, and lake areas established; complete hardware and software for the RS and GIS systems equipped and a multi-disciplinary team has been formulated; 24 experimental and demonstration bases of 9 categories in different ecological zones established; 127 integrated agricultural development and management bases constructed; and a body of experience on integrated regional management and development has been accumulated. Presently the MRL programme is researching, experimenting, and demonstrating industrialisation and the use of economies of scale.

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3. Objectives

3.1 Long-term Objective

To strengthen the sustainable development capacity of MRL region to increase income of the rural population and alleviate poverty.

3.2 Immediate Objectives

• To establish three demonstration zones for sustainable agricultural development and extend the experiences to similar areas;
• To conduct training and dissemination of knowledge and technology for sustainable development and integrated agricultural development;
• To improve ecological environmental conditions and soil erosion; manage and control incidences of schistosomiasis;
• To alleviate poverty for 1 million peasants.

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4. Outputs and Activities

4.1 Capacity building for rural sustainable development in the MRL region

• Further strengthen the MRL Regional Development Centre and the three sustainable development training centres located respectively in the mountainous, hilly, and lake areas.
• Using the MRL Regional Development centre and three training centres as a base, establish a training network at the provincial, prefecture and county levels to popularise the sustainable development concept and technology for integrated agricultural development and rural environmental and community development.
• Develop a regional industrialisation plan.
• Establish MRL regional resource use, product supply and marketing information network system.

Monitoring Indicators: MRL Regional Development Centre strengthened. Three training centres improved. Regional industrialisation plan developed. The regional resources utilisation and product supply and marketing information network system established.

Implementing Agencies: Jiangxi Provincial Office for MRL Development and related local governments.

Time Schedule: January 1997 - December 1999.

4.2 Establishment of a sub-tropical fruit pommel and navel orange industrialised production base in the southern mountainous areas of Jiangxi province.

• Establish a 2,500 hectare pommel production base in Nan Kang, Ganxian and Chongyi counties. Establish a 2,500 hectare navel orange production base in Ningdu and Yudu counties. Plant grass in orchards to manage soil erosion and develop animal husbandry.
• Construct one fruit storage house with a capacity of 5,000 tons and 100 production lines for fruit sorting, grading and packaging (establish one line for 50 farmer households with a total 35 hectare orchard for timely treatment and fresh keeping).
• Establish one fruit processing factory with annual capacity of 10,000 tons.

Monitoring Indicators: 5,000 hectare pommel and navel orange production base; 100 production lines for fruit sorting, grading and packaging; one fruit processing factory with an annual capacity of 10,000 tons. After four years the annual product value is estimated to be 36 million US$ with a profit of 18 million US$. After ten years the annual product value is estimated to reach 70 million US$ with a profit of 35 million US$. Soil erosion should be mitigated.

Implementing Agencies: Ganzhou Prefectural Administrative Office, Fruit Development Companies of Nankang, Ganxian, Chongyi, Ningdu and Yudu counties.

Time Schedule: January 1997 - December 2000

4.3 Special economic forestry development in the Ji-Tai Basin area

• Establish a 2,500 hectare camphor tree production base; 2,000 hectare ginkgo tree production base and 500 hectare lacquer tree production base.
• Plant grass under the forest to develop animal husbandry in forestry areas. Raise 20,000 heads of improved beef cattle and 80,000 heads of goats.
• Establish one forestry chemical factory with annual production capacity of 1,000 tons.

Monitoring Indicators: 5,000 ha of special economic forest; 20,000 heads of beef cattle and 80,000 heads of goats; one forestry chemical factory with an annual capacity of 1,000 tons. After five years, the leaves of camphor and ginkgo trees are to be harvested for processing, the lacquer tree can produce lacquer. Annual product value is estimated to be US$12.5 million with a total profit of US$3.05 million.

Implementing Agencies: Ji'an Prefectural Administrative Office; Forestry Development Companies of Ji'an, Jisui, Taihe and Suichuang counties.

Time Schedule: January 1997 - December 2000

4.4 Integrated aquatic resources development of Poyang Lake area

• Construct a 2,500 hectares raising base with a low dam and net fence to develop the production of high quality fishes such as crab, salmon, bream and white bait in Yangs, Xinzi and Yugan counties.
• Dig 500 hectares ponds for intensive fish raising, and 100,000 square meter hothouse raising base for Chinese soft-shelled turtle in De'an, Jinxian and Xinjian counties.
• Construct a 1,000 ton cold storage tank for aquatic product freezing and preservation.
• Plant grass and build pig pens and biogas digesters in the spare plots around the fishponds, and plant kiwi fruit on the nearby hillsides. Raise 5,000 heads of pigs and develop a 100 hectare kiwi fruit orchard.

Monitoring Indicators: 3,000 hectare aquatic production base, 100,000 square meter hothouse, 100 hectare. kiwi fruit orchard, 5,000 head pigpens. Annual outputs: 7,000 tons of high quality fishes, 10 tons of pearl, 1,000 tons of crab, 250 tons of Chinese soft-shelled turtle, 10,000 heads of pigs for sale and 1,500 tons of kiwi. Annual production value of 28.20 million US$ and annual profit of 9.25 million US$. Comprehensive aquatic resource development and control, and elimination of schistosomiasis in the Poyang Lake Area.

Implementing Agencies: Aquatic Production Companies of De'an, Yangxiu, Yugan, Jinxian and Xinzi counties.

Time Schedule: January 1997 - December 2000

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5. Inputs

5.1 Chinese Inputs

Chinese inputs will be used for transportation, communication, office facilities, management personnel, investigation and planning, research, training, seedling nursing, base construction and equipment etc.

5.2 International Inputs

International inputs will be used for experts, international exchange, training service, study tours, seedling source, technology, instruments and equipment, fund inputs, etc.

5.3 Budget

The total capital needed for this project is US$ 68.00 million. The Chinese participants will raise US$ 41.00 million domestically, while foreign aid and investment will cover US$27.00 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits

The implementation of the above-mentioned projects will greatly strengthen the awareness of sustainable development and environmental consciousness of local people and leads to the best path towards sustainable agricultural and rural development in the Mountain-River-Lake Region. Industrialisation, and the construction of the agricultural and side-line production base will improve the fragile ecology. The exploration and use of land and aquatic resources, which will become a competitive mainstay of production, will bring direct economic benefits of 76.70 million US$ and profits of 30.10 million US$ in annual production value. It will also create employment opportunities for a rural surplus labour force of over 100,000 people. The implementation of these projects will lay a solid foundation for large-scale resource development and environmental improvement in the Mountain-River-Lake Region of Jiangxi province, and provide successive development patterns and advanced experiences for mid-western China and other similar areas in developing countries.

The beneficiaries of these projects are farmers, researchers, managers, foreign investors, government and industrial decision-makers, and commercial enterprises in the Mountain-River-Lake Region of Jiangxi province.

7. Risks

The counterpart funds for all levels should be included in the financial planning. All funds should be allocated in a united way through project executing agencies and implementing agencies must sign project loan repay contracts.

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